1. Cyprus constitutes a tiny part of the European economy – just 0.25 per cent. Greece was 10 times bigger when it got into trouble, or 2.5 per cent of the euro zone economy.If the panic is contained, the economic woes of Cyprus are unlikely to have a wider impact on Europe’s economy.

2. The decision to levy bank depositors has understandable logic because of the unusual nature of the Cypriot economy, says Shane Oliver, head of investment strategy and chief economist at AMP Capital Investors. Because of its tax haven status, its bank assets constitute 800 per cent of Cyprus’ gross domestic product, compared with the European average of 350 per cent.

“The feeling is that Cyprus’s problem is largely a bank problem owing in part to it being tax haven," Oliver tells LeadingCompany.

3. The European Central Bank (ECB) has guaranteed liquidity for euro zone banks, which means that depositors won’t turn up to their bank and find it has no funds.

4. The recapitalisation requirement of banks in other countries is small relative to that in Cyprus.

5. Ireland and Portugal are already well down the path of economic reform, Spain’s banks have the money they need without deposit taxes, and Italy doesn’t need money for its banks.